.The Russell 2000 may have a success problem.Though the small-cap mark got 10.1% in July, it is actually gone down around 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unpredictable transfer to the mark's total composition, with a price quote from Apollo Global revealing 40% of those firms have unfavorable profits." [Entrepreneurs] have actually generally surrendered themselves to the truth that by residing in the Russell 2000, I'm just going to must take the really good with the poor," the organization's chief ETF strategist said to CNBC's "ETF Advantage" this week.To avoid the profits drag, Baiocchi proposes entrepreneurs focus on high quality companies, taking a look at more careful exchange-traded funds including his organization's ALPS O'Shares USA Small-Cap Premium Returns ETF Portions (OUSM)." The tip is actually premium firms that spend and expand their returns, as well as significantly, have less volatility than their peers," he stated. "It allows specialists and also financiers who have actually found small limits go laterally for five years to become assigned to a category that is actually lagged." Besides its own profits display screen, the fund has merely 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outruning the Russell by greater than 2 percent aspects because time.Disclaimer.